Thursday, December 14, 2017

This is Bizarre: A Seller is Pricing His Miami Condo in Terms of Bitcoin

A penthouse condo in Miami is for sale and the seller has priced his condo in terms of bitcoin. He wants 33 bitcoins for his condo, reports CNBC.

Bitcoin is currently trading around $16,500, which means the condo is priced at roughly $544,500.

But the thing is that the bitcoin price is so volatile that a transaction at 33 bitcoins might be undoable.

With the wild swings in the bitcoin price, it is possible to see an increase in the price of bitcoin by more than 50% over a two week period. Thus, the price would end up being around $780,000 for the condo. Unless the buyer is attempting to launder some bitcoins why would someone be willing to pay 50% over market for the condo?

If the price of bitcoin crashes in coming weeks, is the seller really going to keep the price at 33 bitcoins or will he adjust the number of bitcoins to keep the dollar price steady thus signaling that the condo is really being sold in dollar pricing terms, not bitcoin?